It is with thanks to Simon Parsons from Ceridian (also a member of the Employment Consultation Forum) who raised this question with the CIPP and HMRC, that we have now received guidance from HMRC. The former rate of £3 could be multiplied by 52 and divided by 12 to give exactly £13, or if 53 weeks are used then £13.25, both neat round numbers. However with the new £4 rate it works out to be £17.333, or if worked out with 53 weeks then £17.666. Simon asked if HMRC would consider rounding the amount up to £18 for consistency as it would be helpful for the monthly value to be declared for employers to reference to avoid confusion. HMRC considered the matter and are happy to allow monthly paid employees who work regularly from home to be paid £18 per month.
HMRC will amend their guidance in due course to reflect this decision.
AMENDMENTS TO CWG5(2012) CLASS 1A NICS ON BENEFITS IN KIND
6 April 2012
HMRC has made some amendments to helpbook CWG5(2012).
It has been necessary to make the following amendments to the employer helpbook CWG5 (2012):
Page 9 Paragraph 25 Late return penalties - text changed from 'If we do not receive the return by 6 July it will attract a penalty' to 'If we do not receive the return by 19 July it will attract a penalty' Page 19 Appendix 1- Common benefits 'Phones - Your employee is the subscriber' repaired the misalignment of guidance for two circumstances - 'Phone used exclusively for private use' and 'Phone used for both business and private purposes' Page 20 Appendix 1- Common benefits 'Sporting or recreational facilities - All other circumstances' entered the P11D section letter 'K' Page 21 Footnote 3 - Text changed from 'From April 2012 changes are being made to employer supported childcare' to 'From April 2011 changes were made to employer supported childcare'
You can download the updated version of the CWG5(2012) using the link below.
CWG5(2012) Class 1A National Insurance contributions on benefits in kind
CHANGES TO EXPENSES AND BENEFITS TABLES
11 July 2012
A review of the methodology for the Expenses and Benefits tables has been undertaken prior to the update of the tables now scheduled for 31 July 2012. HMRC are making some changes to methodology and formatting as a result of the review.
HMRC has announced the following:
Most of these changes will have little impact on users, but there is one significant change affecting the following categories of expense payments previously reported in tables 4.1 and 4.5:
general expenses travelling and subsistence entertainment
CIPP Policy News Journal
12/04/2013, Page 90 of 362
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